Blockchain for Education & Research Webinar December 6, 2016
Agenda Blockchain basics & potential use cases Promises & challenges Major players & areas of activity Potential use cases in education & research The path forward Appendix: Resources 2
Blockchain Basics & Potential Use Cases
ETHEREUM July 2015 BITCOIN 2008 Blockchain Basics Bitcoin Specific term for the cryptocurrency & technology infrastructure underlying the Bitcoin network, first introduced in 2008* LINQ Oct 2015 HYPERLEDGER Dec 2015 (Linux Foundation) CORDA Apr 2016 Blockchain Generic term for many different distributed ledger technologies (DLTs) that have gained interest & attracted huge investments in recent years * Bitcoin: A Peer to Peer Electronic Cash System, Satoshi Nakamoto (November 2008) https://bitcoin.org/en/bitcoin-paper 4
Basic steps in a generic blockchain transaction 1. Parties A & B wish to conduct a transaction 2. Parties A & B assign cryptographic keys to the transaction 3. The encrypted transaction is broadcast to a distributed network of nodes; the nodes agree the transaction is valid (consensus) 4. Once nodes have consensus a transaction is valid, a new block is created 5. This block is then added to the chain, creating a permanent golden source of the transaction q Each block includes the hash (cryptographic seal) of the prior block in the chain, linking the two blocks (thus the word blockchain ) Source: Blockchain and T2S: A Potential Disruptor, Standard Chartered Bank (June 2016) 6. Transaction between Parties A & B is complete 5
Key components of a permissioned blockchain SHARED LEDGER Append-only distributed system of record shared across a permissioned network CONSENSUS All parties agree to network verified transaction PRIVACY Ensure appropriate visibility; transactions are secure, authenticated & verifiable SMART CONTRACT Rules embedded in transaction database; executed with transactions 6 Source: Making Blockchain Real for Business, IBM (July 2016)
Potential use cases 7
Promises & Challenges
Blockchain, trust & the role of intermediaries DLT provides transaction immutability, which is a key for eliminating the need for an enforcer of trust in the ecosystem. Tamper-proof distributed data enables an environment in which trust is not an issue and allows counterparties to operate with a single version of the truth. 9 Source: The Future of Financial Infrastructure, World Economic Forum (August 2016)
Promises: Decentralized Trust & Internet of Value Provides near real-time exchange of data &/or value in a cryptographically secure & permanent manner Increased transparency Reduces role for intermediaries & challenges information silos Lowers computing costs thru decentralization Supports creation of digital assets Enables audit trails with significant reduction in disputes Includes regulators as required 10
Emergent Technology Challenges General Anonymity & identity Consensus mechanisms Standards Governance Legal & regulatory Business models & commercialization Technology Use of tokens Scalability & interoperability Data management: On & off chain Reference architecture Legacy infrastructure integration Governance Security 11
Major Players & Areas of Activity
Major players & areas of activity Startups: > 1,500 worldwide Open source protocols Bitcoin, Ethereum & Hyperledger (Linux Foundation) Private shared ledgers Cryptocurrencies, wallets & exchanges Identity management Federated & self-sovereign Key management Decentralized applications Sectors Banking, securities markets, payments & insurance Supply chain Healthcare Provenance & digital rights management Transportation, energy & utilities IoT Big IT Hardware, software & services Government agencies; central banks Regulators Reporting 13
Potential Use Cases in Education & Research
Potential use cases in education Crypto Curricula/ Majors Finance & Acctg Transcripts & Credits EDUCATION Credentials & Certification Identity &Access Mgt MOOC Admin Smart Campus 15
Potential use cases in research Biomedical Engineering Connected Healthcare Collaboration Identity Mgt & Info Sharing Clinical Research & Genomics RESEARCH Sharing Economy Smart Cities Smart Campus IoT Security Digital Humanities Smart Grid Environmental Engineering 16
The path forward Research & experiment: White papers & open source protocols Use cases & proofs of concept (POCs) Working groups & mini-consortia Evaluate & engage: Internet2 programs InCommon & TIER; TIPPSS & IT infrastructure; collaborative research IEEE, NSF, W3C, NIST, DHS, etc. Accrediting bodies & associations Regulatory entities Strategic & IT consulting firms; IT providers 17
Appendix
Resources White papers Bitcoin: A Peer to Peer Electronic Cash System, Satoshi Nakamoto (November 2008) https://bitcoin.org/en/bitcoin-paper http://www.virtualschool.edu/mon/economics/smartcontracts.ht ml An Introduction to Bitcoin and Blockchain Technology by Kaye Scholer, February 2016 [13 pages] Sharing ledgers for sharing economies: an exploration of mutual distributed ledgers Professor Michael Mainelli and Mike Smith of Z/yen Group for the EY Global Financial Services Institute, November 2015 [47 pages] The Bitcoin Blockchain as Financial Market Infrastructure: Operational Risk, Angela Walch, St. Mary s University School of Law, March 2015 [58 pages] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2579482 Digital Assets on Public Blockchains White Paper by the BitFury Group, March 2016 [37 pages] https://home.kpmg.com/us/en/home/insights/2016/06/consensus -opportunities-blockchain-and-beyond.html https://www.weforum.org/reports/the-future-of-financialinfrastructure-an-ambitious-look-at-how-blockchain-canreshape-financial-services Other https://bitcoin.org https://ethereum.org/ https://www.hyperledger.org/ http://www.coindesk.com http://www.epicenterbitcoin.com (Video series) Trust:: Data A New Framework for Identity and Data Sharing (Hardjono, Shrier and Pentland, Oct 2016) https://www.amazon.com/dp/153911421x/ref=sr_1_fkmr0_3?s=books&ie=utf8&qid=1477067469&sr=1-3- fkmr0&keywords=shrier+david+mit MIT OPAL & ENIGMA projects Blockchain Protocol Analysis and Cybersecurity Engineering, Stanford University Call for papers and conference (January 26 & 27, 2017) https://cyber.stanford.edu/blockchainconf 19
Susan Ramonat is a globally recognized blockchain thought leader. Formerly Blockchain Program Lead and Chief Risk Officer at SEI Investments, she has applied over 25 years of experience in the highly regulated financial services industry and knowledge of blockchain, operational risk and cybersecurity to the healthcare field as Founder and CEO of Spiritus Partners. Spiritus is dedicated to improving patient safety and reducing the costs and risks of adverse events for medical device manufacturers, healthcare providers, and payers. Susan serves on the Dean s Advisory Council of the College of Arts and Sciences at Loyola University Chicago and on the university s Industrial Advisory Board for Engineering Science. She is also an executive committee member of the Cybersecurity Risk Council, a peer-trusted working group of CISOs from Fortune 500 companies and government agencies. Susan is a magna cum laude graduate of Princeton University. sramonat@spirituspartners.com Spiritus Partners Princeton Chicago @susan_ramonat